Whoever follows the situation from a certain distance can ask: has Brazil stopped? How is its economy in this political storm? The best answer I find is given to me on a daily basis in the contacts with businesspeople and investors who continue to believe in Brazil. Despite politics, Brazil remains a great country and full of opportunities. Central Bank indicators maintain the expectation on the GDP growth for 2018 (2.6%), there is an improvement (albeit slow) in the employment, the inflation is steady, the interest rates are at the lowest levels ever, and savings and income are growing.
We can almost conclude that there are two Brazils: the one from its economy and serious businesspeople, and the one from its politics. Politics interfere in the economy but it can still survive despite politics. Complex? Certainly, but Brazil has never been simple. Nowadays we continue to say that it is not for beginners but it will not be for the “professionals” of yesterday who were familiar with the old policies. The most romantic want to believe that something is happening in Brazil, that this will be the time for renewal and for the long-awaited reforms. Will it be this time?
This is part of an article written by Afonso Antunes, Market Accesss partner in Brazil, for the Portuguese newspaper Diário de Aveiro. The text, which you can access on the document below, is only available in Portuguese.